4 Vital Things That Affect the Aircraft Values for Helicopters

In 2016, there were just over 56,000 helicopters in the world. Over half of these were designated military helicopters. With such a low number of helicopters in the world, the aircraft tends to hold its value.

However, the pricing range of helicopters can vary greatly. Costs can range between $37,500 for small, single-person helicopters to $21,000,000 for an AgustaWestland AW101.

But how do you determine the value of a helicopter? Which factors determine aircraft values?

Keep reading to learn 4 vital factors that affect the value of a helicopter.

4 Factors Affecting Helicopter Aircraft Values

Here are 4 very important factors that professional appraisers consider when determining the value of a helicopter.

1. Country of Registry

Most people finance a helicopter when they make such a large purchase. As such, residents from some countries may be able to avoid making payments on their purchase or even exercise eminent domain. Regardless, these purchasers fail to meet the terms of the purchase.

To counteract the risk of people registering aircraft in these countries, a financier may charge higher rates.

2. Personal Details on the Previous Operator

Financiers like to know if a previous operator has any pending litigation charges, liens, overdue debts, etc. These details provide insight into the seller or previous operator.

Financiers will also often ask for maintenance records, to see if previous operators kept up with regularly scheduled maintenance, or if the aircraft was neglected in any way.

3. Helicopter Main Components

The parts of a helicopter must be replaced if they are life-limited components, are faulty, or have logged many hours.

To keep track of all components, operators use Time Since Overhaul (TSO) or Time Since New (TSN) numbers. These keep track of how old each component is and how many flight hours they have logged.

TSO components must be overhauled periodically and then can be returned to service. TSN components are those that have to be removed and replaced with alternate components.

4. Add-ons Installed

These additional components may include those that offer emergency services, additional navigation technology, or even offshore support.

The valuation of these components and their longevity should also be taken into account.

Final Thoughts

We have listed 4 important factors in the valuation of helicopter aircraft. However, it’s important to consult an appraiser that specializes in aircraft. Only they will be able to take all of these factors and more into account when determining the value of a helicopter you are looking to buy or sell.

To get accurate pricing, enter your details in our valuation service. This service lists current prices as well as offering projected aircraft values.

By |2019-04-10T21:03:16+00:00April 10th, 2019|Educational|